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Assessing Government Scheme Coverage in Meghalaya
Digitally auditing inclusion and delivery of 10+ social welfare programs
Study of SHG-BCs (Self-Help Group Business Correspondents)
Research at a Glance
This study was conducted to assess the performance, challenges and opportunities within the Self-Help Group Business Correspondent (SHG-BC) model in India. The research focused on three states, Jharkhand, Madhya Pradesh and Odisha, where the model was first launched in 2016 and has since matured, making them ideal for evaluating the operational effectiveness and sustainability of SHG-BCs.
The study aimed to understand the role of SHG-BCs in driving financial inclusion, identify enabling and disabling factors influencing their performance, and suggest actionable recommendations for strengthening the model.
1855
MN+
respondents surveyed across Jharkhand, Madhya Pradesh and Odisha.
136
MN+
SHG-BCs and 45 non-SHG BCs assessed to evaluate performance and challenges.
Evaluating how SHG-BCs are transforming rural financial inclusion across key Indian states.
The study used a multi-stage sampling approach covering six districts in Jharkhand, five in Madhya Pradesh, and select districts in Odisha. Respondents included SHG-BCs, non-SHG BCs, SHG-member customers, general customers, and non-customers.
Sampling was based on transaction data analysis using SHG-BC Management Information System (MIS) for three consecutive months (May, June and July). SHG-BCs were selected using Probability Proportionate to Size (PPS) sampling, ensuring representation across districts and transaction volume clusters.
The comprehensive respondent base included:
- 136 SHG-BCs and 45 non-SHG BCs
- 693 SHG-member customers and 703 general customers
- 278 non-customers representing households outside the BC network
Findings from the study provide a nuanced understanding of the SHG-BC model’s performance, identifying operational strengths, areas of inefficiency, and potential interventions to enhance service delivery, outreach, and financial literacy among rural populations.
Who can benefit from this study?
State Rural Livelihood Missions and Financial Regulators
Can use the insights to refine SHG-BC guidelines, improve capacity-building initiatives, and ensure long-term sustainability of the model.
Banks and Financial Service Providers
Can leverage findings to strengthen partnerships with SHG-BC networks, expand last-mile delivery, and enhance digital financial inclusion strategies.
